Murphy USA Inc. (MUSA): PESTLE Analysis [Nov-2025 Updated]

You need to know if Murphy USA Inc. (MUSA) can keep its margins steady against a volatile crude market and rising compliance costs. Honestly, MUSA's 2025 outlook is a tightrope walk, balancing stable fuel demand from strong employment against sticky US inflation that is defintely squeezing non-fuel sales. They must fund a significant $450 million in 2025 CAPEX, meaning the high interest rate environment makes every expansion decision costlier, plus they have to manage the long-term threat of EV adoption across their nearly 1,800 sites. The real opportunity lies in how they use technology to meet the growing consumer demand for fresh food and faster service.

Murphy USA Inc. (MUSA) - PESTLE Analysis: Political factors

The political landscape for a fuel retailer like Murphy USA Inc. (MUSA) is less about direct lobbying and more about managing the downstream cost and demand consequences of major federal and state environmental mandates. Your core risk here is regulatory compliance cost, specifically the Renewable Identification Numbers (RINs) under the RFS, and the demand destruction from rising pump prices due to new state taxes and low-carbon fuel standards (LCFS). We have clear, non-negotiable numbers for 2025 that demand attention.

Federal renewable fuel standards (RFS) mandate increasing biofuel blending volumes

The U.S. Environmental Protection Agency (EPA) finalized the Renewable Fuel Standard (RFS) volumes for 2023 through 2025, setting a clear, escalating requirement for obligated parties, which impacts your wholesale fuel costs. The RFS mandates the use of a minimum volume of renewable fuel, creating a market for tradable compliance credits called RINs. Murphy USA's profitability is defintely sensitive to the volatility of these RIN prices.

For the 2025 fiscal year, the total Renewable Volume Obligation (RVO) is set at 22.33 billion RINs (ethanol-equivalent gallons). This is a significant increase from the 2024 RVO of 21.54 billion RINs, maintaining pressure on the supply chain to absorb more biofuel. The table below breaks down the 2025 volume requirements, which drive the cost of compliance for every gallon of conventional fuel sold.

The total renewable fuel percentage standard for 2025 is projected to be around 13.05 percent of transportation fuel, up from 12.55 percent in 2024. This steady, mandated growth means the cost of compliance, which is generally passed through to the consumer, is a permanent fixture in your operating model.

State-level low-carbon fuel standards (LCFS) in states like California drive compliance costs

Beyond the federal RFS, state-level mandates like the Low-Carbon Fuel Standard (LCFS) in California create a second layer of compliance cost and complexity. The California Air Resources Board (CARB) approved amendments that took effect on July 1, 2025, requiring a 9% reduction in carbon intensity for transportation fuels.

The LCFS is a credit trading system where the cost of credits (LCFS credits) is ultimately borne by the consumer, impacting pump prices and potentially reducing demand. Here is the quick math on the near-term impact:

• Implied LCFS cost passed through to drivers: Less than 10 cents per US gallon (as of mid-2025).
• LCFS Credit Prices (June 2025 average): Approximately $48.36 per metric ton.
• New Carbon Intensity Reduction Target (Effective July 1, 2025): 9%.

While the immediate pass-through cost is manageable, the new LCFS amendments accelerate the carbon intensity reduction target to 30% by 2030, a major jump from the previous 20% target. This future stringency will put significant upward pressure on LCFS credit prices, making the cost of selling conventional fuel in California markets substantially higher over the long term. You need to model a rising LCFS cost into your long-term California-market forecasts.

Potential for new federal or state gasoline taxes to fund infrastructure, impacting pump prices

The federal excise tax on gasoline has remained static at 18.4 cents per gallon since 1993, but state-level actions are creating significant regional disparities in pump prices. These state tax increases, often earmarked for infrastructure, are a direct, non-negotiable cost passed to the consumer, influencing their willingness to drive and, consequently, fuel demand.

In 2025, several states where Murphy USA operates have seen, or will see, tax increases. This is a critical factor for your regional pricing strategy, as a higher tax base can erode your competitive advantage against non-fuel retailers.

The following state-level gasoline tax increases took effect in 2025:

• Washington: Increased to 55.4 cents per gallon starting July 1, 2025 (a 6-cent increase).
• Mississippi: Increased to 21 cents per gallon starting July 1, 2025 (a 3-cent increase).
• California: State excise tax increased to 61.2 cents per gallon on July 1, 2025 (a 1.6-cent increase tied to inflation).

These excise taxes are a direct headwind to demand, especially in a price-sensitive market. You need to track these changes state-by-state to manage price elasticity of demand.

Ongoing US-China trade tensions affect global crude oil price volatility

The geopolitical friction between the U.S. and China, the world's two largest economies, directly translates into crude oil price volatility, which is the single biggest factor in your wholesale fuel cost. Trade tensions create uncertainty, which commodity traders hate, leading to sharp price swings that complicate your fuel inventory and hedging strategies.

In April 2025, escalating trade tensions and tariffs led to significant market reactions:

• West Texas Intermediate (WTI) crude plunged to $59.53 per barrel.
• Brent crude fell to $62.82 per barrel.
• U.S. crude exports to China saw a 35% month-over-month decline in April 2025 as Chinese refiners shifted to alternative suppliers.

This volatility is a double-edged sword: it creates opportunities for margin capture if you manage your inventory well, but it also introduces significant risk. The trade conflict is accelerating structural shifts in global oil trade patterns, with China strategically reducing its intake of U.S. crude. This means the market is less predictable, and your fuel procurement team must factor in this geopolitical risk premium.

Murphy USA Inc. (MUSA) - PESTLE Analysis: Economic factors

US inflation remains sticky, pressuring consumer discretionary spending on non-fuel items.

The core economic challenge for Murphy USA is the sticky inflation environment, which is directly eroding the discretionary spending (non-fuel purchases) that drives high-margin merchandise sales. While the overall US consumer spending growth is forecast to weaken to 3.7% in 2025, down from 5.7% in 2024, the pain is not evenly distributed.

Lower- and middle-income households, which represent a significant portion of the customer base at Murphy USA's value-focused stores, are pulling back the most. For instance, in October 2025, lower-income households saw year-over-year spending growth of just 0.7%, dramatically lagging the 2.7% growth seen in higher-income brackets. This disparity means that while customers are still buying fuel, they are making noticeable cuts to semi-discretionary items inside the store.

Honestly, 62% of shoppers report feeling financial strain, according to a 2025 holiday survey, so you should expect continued pressure on high-margin categories like packaged beverages and snacks. The good news is that merchandise contribution margin is still expected to be at the low end of the $855 million to $875 million guided range for 2025, showing resilience in core categories.

Volatile crude oil prices keep retail fuel margins unpredictable, a core risk.

Crude oil price volatility remains the single biggest driver of fuel margin unpredictability for Murphy USA. As of November 2025, West Texas Intermediate (WTI) crude is sustained near $60/bbl, largely due to geopolitical factors offsetting a market surplus. However, the average WTI projection for 2025 was higher, around US$70.86/bbl, highlighting the significant swings in market expectations throughout the year.

Murphy USA's business model relies heavily on its ability to manage the wholesale-to-retail price lag, or fuel margin capture. The third quarter of 2025 saw retail fuel margins at 28.3 cents per gallon (cpg), which was an 11.3% decrease compared to the prior-year quarter, illustrating the immediate impact of market shifts. A sustained drop in crude prices, which some analysts predict for 2026, could actually benefit Oil Marketing Companies (OMCs) like Murphy USA if retail prices lag the decline, leading to improved marketing margins.

Here is a quick look at the recent fuel margin dynamics:

• Q3 2025 Retail Fuel Margin: 28.3 cpg
• Year-over-Year Change (Q3 2025 vs. Q3 2024): -11.3%
• Annual Fuel Margin Improvement Target: 0.5 cents per gallon

Interest rate environment makes the cost of capital for MUSA's planned $450 million in 2025 CAPEX higher.

The high-interest rate environment, a result of the Federal Reserve's prolonged fight against inflation, directly increases the cost of capital for Murphy USA's expansion plans. The company has maintained its 2025 capital expenditure (CAPEX) guidance in the range of $450 million to $500 million, with the low end being the $450 million figure you cited. This CAPEX is crucial for the planned opening of up to 50 new stores and 30 raze-and-rebuild projects in 2025.

The Federal Reserve lowered the target range for the federal funds rate to 3.75% to 4.00% at its October 2025 meeting, but this is still a historically elevated level. For corporate borrowing, the Bank Prime Loan rate was 7.00% as of November 24, 2025. This high benchmark rate means that any debt financing for the $450 million CAPEX is significantly more expensive than in the pre-2022 low-rate environment. The higher cost of debt raises the weighted average cost of capital (WACC), demanding that new store projects deliver higher internal rates of return (IRR) to justify the investment. It's a tighter hurdle rate for every new build.

Strong employment figures support consistent vehicle miles traveled (VMT), stabilizing fuel demand.

The US labor market remains a key stabilizing factor for Murphy USA's core fuel business. The seasonally adjusted US unemployment rate in September 2025 was 4.4%, which is still considered low and supports a consistent level of commuting and general travel.

This strong employment translates directly into consistent vehicle miles traveled (VMT), which is the primary driver of fuel volume. The Federal Highway Administration (FHWA) projects total VMT to increase at an average annual rate of 0.6% between 2023 and 2053. Light-duty VMT, which accounts for the vast majority of Murphy USA's sales, is projected to grow by 0.5% per year. This moderate, steady growth provides a stable foundation for fuel volumes, even as fuel margins fluctuate. The company expects to sell just over 5 billion gallons of fuel in 2025, representing a 4.5% increase from 2024, showing confidence in underlying demand.

Murphy USA Inc. (MUSA) - PESTLE Analysis: Social factors

You need to understand how shifts in consumer behavior and the labor market are impacting Murphy USA's core business model right now. The short takeaway is that the decades-long reliance on fuel and tobacco is being challenged by the 'food-first' convenience model, and the cost of keeping stores staffed is rising fast. You can't ignore the digital experience anymore; it's directly tied to customer retention.

Increasing consumer demand for fresh food and prepared meals over traditional convenience store snacks.

The US convenience store market is fundamentally changing, moving from a transaction-based stop for cigarettes and packaged drinks to a destination for quick, quality meals. This shift is why the US convenience store foodservice market is projected to reach $72.5 billion in 2025, with sales projected to rise 5.7% this year alone.

For Murphy USA, this trend is a major pivot point. While the core Murphy USA stores have historically focused on fuel and tobacco, the acquisition of QuickChek is their strategic answer to this social demand. QuickChek's average per store month food and beverage sales have been positive for the third straight quarter as of Q2 2025, a strong signal in a market where many quick-service restaurants (QSRs) are reporting declines. Across the entire Murphy USA portfolio, non-nicotine merchandise contribution dollars grew 2.8% in Q3 2025 compared to the prior year, demonstrating that the customer is moving away from traditional convenience items.

Here's the quick math on merchandise contribution growth for 2025, showing where the non-nicotine categories are gaining traction:

What this estimate hides is that non-nicotine sales, which include fresh food, packaged beverages, and candy, are the long-term growth engine, even if nicotine saw a massive short-term bump in Q3 2025.

Customers expect faster service, driving adoption of mobile ordering and self-checkout.

The social expectation for speed and convenience is now defined by technology. Customers want to skip the line, and the convenience store industry is responding, with the U.S. self-checkout systems market projected to grow at a Compound Annual Growth Rate (CAGR) of 12.0% from 2025 to 2030.

Murphy USA is leveraging its QuickChek brand to lead this technological integration. Following the revamp of the QuickChek loyalty program, the number of mobile orders doubled as of Q2 2025. This is a defintely clear indicator that when you offer a seamless, digital experience, customers will use it to save time. The technology is no longer a nice-to-have; it's a necessary tool for managing customer throughput and reducing labor pressure at the register.

Growing preference for loyalty programs; MUSA's Murphy Drive Rewards program is key to retaining market share.

Loyalty programs are essential for driving repeat visits and capturing valuable customer data (psychographics). The Murphy Drive Rewards program is a critical asset, ranked highly in 2025 among US convenience and gas station programs.

The program's success is not just about points; it's about personalization and value in an inflationary environment. The direct impact of loyalty on customer behavior is clear from the QuickChek data, where the new program caused mobile orders to double. This shows the program is successfully integrating the digital experience with the purchasing incentive, which is the whole point of a modern loyalty scheme.

• Murphy Drive Rewards is a top-five scoring loyalty program in a 2025 ranking.
• Loyalty programs are key to attracting younger, tech-savvy consumers.
• The program drives digital adoption, as seen by the doubling of mobile orders at QuickChek.

Persistent labor shortages in the retail sector push up average store wages, pressuring operating expenses.

The tight labor market is a significant headwind for all retail, and convenience stores are no exception. This persistent labor shortage drives wage inflation, directly impacting store operating expenses (OPEX). You can see this clearly in Murphy USA's 2025 financials.

In Q3 2025, total store and other operating expenses were $9.8 million higher compared to Q3 2024, with a main driver being increased employee-related expenses. Similarly, Q2 2025 saw total store and other operating expenses rise by $5.3 million year-over-year due to the same factor.

Here's the quick math: Store OPEX (excluding payment fees and rent) on an Average Per Store Month (APSM) basis was 3.0% higher in Q3 2025 versus the prior year. This cost pressure is why the company is guiding for full-year 2025 Store OPEX (APSM) to be between $36.2k and $36.6k. The labor market is forcing a choice: invest in higher wages to retain staff or invest in technology like self-checkout to reduce the staff needed in the first place.

Finance: Track Q4 2025 OPEX against the $36.2k-$36.6k APSM guidance to confirm labor cost stabilization.

Murphy USA Inc. (MUSA) - PESTLE Analysis: Technological factors

The technology landscape for Murphy USA Inc. (MUSA) in 2025 is a dual-track story: a long-term existential threat to the core fuel business, but a near-term, high-margin opportunity in using data to optimize the in-store convenience model. You're seeing a classic retail pivot where technology shifts the focus from the forecourt to the floor. The company is defintely prioritizing digital engagement and operational efficiency to manage costs and boost merchandise sales, which is smart given the macro trends.

Rapid deployment of electric vehicle (EV) charging infrastructure is a long-term threat to fuel sales.

The rise of the electric vehicle (EV) is the single biggest technological threat to Murphy USA's primary revenue stream: motor fuel sales. The US fast-charging network is expanding at a record pace in 2025, with an estimated 16,700 new DC fast-charging ports forecasted to open this year, representing a 19% year-over-year increase. This deployment is not slowing down; analysts predict the total number of US fast-charging ports will surpass 100,000 by 2027. This is a direct, long-term headwind to the company's core business model.

The strategic challenge is that EV charging fundamentally changes the customer visit, shifting it from a 3-minute fuel stop to a 30-minute dwell time. While this longer stay is an opportunity for in-store merchandise sales, Murphy USA has not announced a large-scale, proprietary EV charging rollout in 2025, suggesting a cautious, wait-and-see approach. This position is understandable, as convenience stores are currently trailing restaurants in average monthly charging sessions, reporting 137 sessions per month versus 225 for restaurants as of late 2024.

Here's the quick math on the industry shift:

Investment in point-of-sale (POS) systems and data analytics improves inventory management and pricing.

Murphy USA is actively investing in data analytics to optimize its high-margin merchandise business, which is a clear opportunity. The company is leveraging machine learning and advanced demand forecasting to drive better results. This system uses a sophisticated model that incorporates factors like weather patterns and holidays to predict demand for high-margin items, which typically carry a 50% to 60% margin.

This focus on data is directly impacting the bottom line in two ways:

• It improves sales and profitability by ensuring better product availability.
• It increases labor scheduling accuracy, which is crucial since labor is the 'single biggest cost for a convenience-store chain.'

The digital initiatives, including the use of data analytics for personalization, drove an 11% increase in merchandise transactions at Murphy USA branded stores in the second quarter of 2025. This is a clear, measurable win for the technology spend.

Increased use of mobile payment and digital wallets streamlines transactions, boosting throughput.

The shift to digital payments is a major tailwind for transaction speed (throughput) and reduced payment processing costs. By mid-2025, an estimated 65% of adults in the US were using a digital wallet, a jump from 57% in 2024. More than 80% of consumers now use tap-to-pay or mobile wallets, pushing retailers to upgrade their point-of-sale (POS) systems to be Near-Field Communication (NFC)-enabled.

Murphy USA has a long-standing advantage here with its proprietary MurPay system, which links directly to customer checking accounts via the Automated Clearing House (ACH) network. This bypasses higher credit card interchange fees, keeping transaction costs lower than credit or debit cards-a critical competitive edge for a low-cost fuel retailer. This digital engagement strategy also drove a 31% increase in new loyalty enrollments in Q2 2025. Frictionless payment is a necessity now.

Rollout of self-checkout kiosks helps manage labor costs and improves customer experience.

The convenience store industry is seeing a massive consumer preference shift toward self-service, with 84% of US consumers preferring self-service options. This trend is a key technological lever for managing the rising cost of labor, which is a major operating expense. Murphy USA is aggressively focused on cost controls, with store operating expenses forecasted to be at or below the low end of the $36,500 to $37,000 per store month range in 2025.

The company's new-to-industry (NTI) store design, which is outperforming older sites with nearly 40% better merchandise margins, is built with a larger footprint and features 'efficient queue areas.' This design philosophy strongly indicates a move toward self-checkout technology to handle high transaction volumes and reduce employee-manned register lanes. Deploying self-checkout kiosks is a direct action to optimize labor scheduling, which the company has identified as a key cost-control measure using its advanced demand forecasting. What this estimate hides is the upfront capital cost of the kiosks, but the long-term labor savings are clear.

Murphy USA Inc. (MUSA) - PESTLE Analysis: Legal factors

Stricter data privacy laws (like CCPA) require MUSA to invest more in customer data protection and compliance.

The absence of a single federal privacy law means Murphy USA operates within a complex, expensive patchwork of state regulations. By November 2025, 20 US states have enacted comprehensive consumer privacy laws, with more stringent requirements than ever before.

For a retailer like Murphy USA, which collects customer data through its loyalty programs and digital platforms, complying with laws like the California Consumer Privacy Act (CCPA) is defintely a major cost center. The CCPA's 2025 revenue threshold is $26.625 million, which MUSA far exceeds, so compliance is non-negotiable.

Enforcement is active and costly. For example, the California Privacy Protection Agency (CPPA) announced a settlement with one retailer in May 2025 for $345,178 over alleged failures in its opt-out processes. That is the cost of getting the fine print wrong. To avoid these penalties, MUSA must continually update its data mapping, consent mechanisms, and security protocols across all its digital customer touchpoints.

Ongoing litigation risk related to environmental spills and underground storage tank (UST) compliance.

Operating a network of approximately ~1,800 retail sites means Murphy USA carries a perpetual, high-stakes environmental liability risk, primarily centered on its Underground Storage Tanks (USTs).

The EPA requires owners of more than 100 USTs-which MUSA is-to demonstrate $2 million in aggregate financial coverage for corrective actions and third-party damages from leaks. But the real risk is the cost of remediation and legal fees.

We see this risk play out in real-time. In March 2025, the Tennessee Department of Environment and Conservation issued a Proposed Order and Assessment to Murphy Oil USA, Inc., addressing alleged violations of state UST regulations. Earlier, a Director's Order was signed in August 2024 against Murphy USA No. 7450 in Tennessee for violations including a failure to install, calibrate, or maintain release detection methods for piping. This is an operational issue that becomes a legal liability very quickly.

Here's the quick math: a single, complex environmental cleanup can cost millions, plus the associated civil penalties. You have to budget for this ongoing compliance and remediation work.

Varying state and local minimum wage laws increase labor costs across MUSA's ~1,800 sites.

The lack of a unified federal minimum wage means MUSA must manage a fragmented and rapidly escalating labor cost structure across the country. In 2025, a record 88 jurisdictions-23 states and 65 cities and counties-are raising their minimum wage floors.

This is a significant headwind for a high-volume, low-margin retail business. By the end of 2025, 70 jurisdictions will reach or exceed a $15.00 per hour minimum wage, and 53 jurisdictions will reach or exceed $17.00 per hour. This forced wage inflation directly impacts the labor costs for store associates at MUSA's approximately ~1,800 locations, which are spread across many of these high-wage states.

The constant changes also increase administrative compliance costs. MUSA needs advanced payroll and scheduling systems to track these hyper-local wage rules, plus, you need to ensure proper training to avoid wage-and-hour litigation.

The table below shows the sheer scale of the wage floor movement in 2025:

Federal and state regulations on tobacco and vapor product sales are constantly changing.

Tobacco and vapor products are a major merchandise category for Murphy USA, but they are also a regulatory minefield. The legal landscape is constantly shifting, driven by public health concerns and tax revenue goals.

The good news is that increased federal enforcement can actually help compliant retailers like MUSA. In November 2025, Congress approved $200 million for the Food and Drug Administration (FDA) to step up enforcement against illegal vapor products. Plus, the Ensuring the Necessary Destruction (END) of Illicit Chinese Tobacco Act became law in November 2025, giving the FDA new authority to destroy unauthorized e-cigarettes imported from China.

This crackdown removes illicit, untaxed competition from the market, which directly benefits MUSA's sales of authorized products. We saw this play out in Q3 2025, where the company reported merchandise contribution dollars increased 11.3% to $241.2 million, driven by exceptional performance in the nicotine space.

The ongoing legal risks are:

• Age verification compliance (federal minimum age is 21).
• State and local flavor bans (e.g., Denver voters upheld a flavored tobacco ban).
• New excise taxes at the state level that reduce consumer demand.

You have to be defintely sure your point-of-sale systems and staff training are flawless on age checks.

Murphy USA Inc. (MUSA) - PESTLE Analysis: Environmental factors

Pressure from investors and regulators to report on Scope 1 and 2 carbon emissions

You are seeing a clear and increasing demand from institutional investors and regulators for transparency on climate-related financial risk, and Murphy USA is responding by formalizing its disclosure. The company publishes an annual Environmental, Social, and Governance (ESG) Summary, with the 2024 report covering the full fiscal year 2024 data. This commitment aligns with the Sustainability Accounting Standards Board (SASB) framework, which is the gold standard for communicating material ESG risks to investors.

This isn't just a compliance exercise; it's a cost of capital issue. To give you a concrete baseline, Murphy USA's reported total carbon emissions for 2022 were approximately 87,850,000 kg CO2e. The vast majority of this comes from indirect sources (Scope 2), which is purchased electricity, totaling about 81,500,000 kg CO2e. Scope 1 emissions, from direct sources like company vehicles and stationary combustion, were about 6,350,000 kg CO2e. The key action here is managing that Scope 2 number.

Increased push for adoption of E15 (15% ethanol blend) and other lower-carbon fuels

The regulatory landscape for lower-carbon fuels, particularly ethanol blends, is creating a significant near-term market opportunity for Murphy USA in 2025. The company is already a leading retailer of E15 (a 15% ethanol blend, also known as Unleaded 88), which is a cleaner-burning, lower-cost fuel option for customers with model year 2001 and newer vehicles. It's defintely a competitive advantage.

The big news is the U.S. Environmental Protection Agency's (EPA) final rule, effective in 2025, which allows year-round sales of E15 in eight key Midwestern states. This removes the regulatory uncertainty that previously halted summer sales, providing a massive tailwind for MUSA's operations in states like Illinois, Iowa, and Missouri. For the consumer, this fuel typically offers a price advantage of at least 10 cents per gallon over the standard E10 blend, driving both volume and a lower carbon footprint per gallon sold.

• Capitalize on the 2025 EPA rule for year-round E15.
• Market the typical 10 cents per gallon consumer saving.
• Expand E15 infrastructure in the eight newly approved Midwest states.

Transition to more energy-efficient store designs and lighting to cut utility costs

The push for energy efficiency is a direct response to rising utility costs, which are projected to increase significantly in many regions, with some areas like New Jersey seeing projected average monthly customer bill increases ranging from 17.23% to 20.20% starting in June 2025. This macroeconomic pressure makes every watt of electricity a financial line item that must be managed.

Murphy USA's aggressive new-to-industry (NTI) store build and raze-and-rebuild program is the primary vehicle for this transition. The new, larger store format is designed for operational efficiency, which includes energy-saving measures like modern HVAC systems and, critically, LED lighting retrofits. While the company focuses on the revenue side, reporting that new stores are driving 40% better merchandise margins and 20% more fuel gallons sold, the underlying cost control from energy-efficient design is a core component of achieving those superior returns.

Need for capital investment in UST upgrades to prevent soil and groundwater contamination

The environmental risk of Underground Storage Tanks (USTs) leaking petroleum is a non-discretionary capital cost for any fuel retailer. The regulatory environment is forcing a major compliance wave, with a key deadline being the mandate to replace or permanently close all single-walled USTs by December 31, 2025, in states like California. This creates a hard deadline for significant capital deployment.

While Murphy USA's capital expenditure guidance is primarily focused on organic growth (targeting up to 40 new-to-industry stores in 2025), a portion of this high capital spend-which was at the high end of the $400 million to $450 million guided range in 2024 and is accelerating into 2025-is dedicated to these non-discretionary environmental upgrades. The industry-wide risk is substantial: the EPA's Leaking Underground Storage Tank (LUST) Trust Fund balance was approximately $1.63 billion as of September 2024, and states collectively spend over $1.7 billion annually on LUST cleanups, showing the financial magnitude of non-compliance and environmental remediation. You have to invest in double-walled tanks, period. The immediate action is to complete all mandated UST replacements before the year-end December 31, 2025, deadline to avoid steep regulatory penalties and environmental liability.